RWS Holdings Delivers Positive AGM Update, Expects Modest Growth in FY25
Why we think this is good
The AGM statement from RWS Holdings provides a generally positive update, highlighting the company's return to growth, successful strategic pivot, and continued OCC growth in the first quarter of FY25. While the company acknowledges ongoing challenges with pricing and mix, the overall tone of the update is optimistic, and the broker targets suggest the market sees potential upside in the company's performance.
Key Points
- Returned to growth in the second half of FY24 on an OCC basis
- Achieved high client retention levels and significant new wins
- Successfully pivoted towards AI-led and more specialist solutions
- Continued OCC growth in the first quarter of FY25, supported by strong volumes
- Ongoing challenges with price and mix pressure
- Expects modest OCC revenue growth in FY25, with volume growth offsetting price pressure
Summary
In its AGM statement, RWS Holdings plc reported that it continued to deliver on its medium-term strategy in FY24, returning to growth in the second half of the year on an organic constant currency (OCC) basis. The company highlighted high client retention levels, significant new wins, and successful investments in growth initiatives and efficiency actions that have enabled it to pivot towards AI-led and more specialist solutions.
The company expects to deliver modest OCC revenue growth in FY25, with growth in volumes anticipated to more than offset ongoing price pressure. Broker targets remain positive, with multiple "Buy" recommendations and price targets above the current share price.